The Morning View from West End: June 1, 2018

Announced this morning, the economy added 223,000 jobs in May and the unemployment rate fell one tenth to 3.8%. Looking at wages, Average Hourly Earnings increased 0.3% in May and is up 2.7% on an annual basis. A strong report, with the headline number topping 200k and wages continuing to rise, albeit slowly considering the current economic cycle. The Federal Reserve likely remains on track with their planned increases this year, as inflationary levels remain near their stated target, per the 1.8% annual increase of the core the PCE price index announced yesterday. Heading into the market open, both equity futures and bond yields ticked higher following the jobs report.